Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the rate of return would possibly increase, possibly decrease, or possibly remain constant because of the following reasons :
- In an organization, the rate of return depends on many terms i.e stock rate, dividends, etc.
- The rate of return increases when dividends do not increase with the growth rate.
- The rate of return decreases when dividends increase with the growth rate.
